NXM Pinnacles JV

Extremely bullish on the Pinnacles joint venture moving into the Feasibility study/ decision to mine this year and into production Q1 next year. Thought I would put together a quick summary of the numbers I am expecting to see and throw it out for discussion with holders and non holders.

I've chosen to use HAW as a base for peer comparison, the project is similar size, comparable grades and conveniently they also have an ore sale agreement with Saracen. Notable differences are that HAW is located slightly further away from Saracen than Pinnacles, and they were mining at a much lower gold price whereas Nexus has the foresight to sit on the project until the price of gold was right.

Above is the resource I have used. I will update when infill drilling is done and we have something better, for the sake of simplicity i have used the 609 tonnes at 4.0g/t. The screenshot below is from page 4 of HAW 2019 Quarterly and is a summary they put together at the end of their 2 year open pit campaign at their Trouser Legs Gold Mine. In red next to their figures is the figures I have used for Pinnacles.

In summary, if they got all 609 tonnes processed in the first 2 years of operation for 74,000 ounces at 95 percent assumed recovery, the bull case using the figures above give an approx cash return of $121,000,000, minus Saracens 10 percent for their JV return. Welcome anyone to check the numbers or add in their opinions/ variations.

Smulv